A Shift in Mexico’s Fiscal Policy Bolsters Optimism for 2015
Mexico has embarked on a bold package of structural reform to break free from the three decades of slow growth, low productivity, pervasive labour market informality and high-income inequality. 2015 will see the results of the ‘Pacto Por Mexico’ agreement, where major structural measures have been legislated to improve economic competition, education, energy, the financial sector, labour, infrastructure, telecommunications and the tax system. If fully implemented, these reforms are forecasted to increase annual trend per capita GDP growth by as much as one percentage point over the next ten years.
Going for Growth in 2015 – Reforms Made by the ‘Pacto Por Mexico’ Agreement
- Reducing barriers to foreign direct investment: The wireless, fixed-line, satellite, media, insurance and leasing sectors have been opened more substantially to FDI in 2014.